The fate of the 280 Atlantis, and 350 Alliance employees affected by the mega-merger remains largely unclear but the new entity’s top heavy Atlantis management structure has Alliance staffers nervous.

Many are calling the deal a ‘reverse takeover,’ even though it was officially deemed a merger while being treated for accounting purposes as a purchase of Atlantis by Alliance.

‘In the spoils of war, he [MacMillan] gained everything. I feel like we just went through a takeover,’ said one Alliance Sr. executive who was clearly shocked by the exit of Lantos.

‘Even though we were getting so big, I guess we just believed that this was still a mom and pop shop because mom and pop were always around.’

The restructuring costs of the merger are estimated at $50 million, of which between $15 million and $20 million will be used for employee severance packages, according to Alliance Atlantis ceo Michael MacMillan.

Although MacMillan was unable to give a definite number of jobs that will be lost, industry speculation pegs the number at roughly 100 people.

The brunt of the layoffs are expected at a senior level with the merger creating a duplication of many executive positions here in Canada, in the u.s. and overseas.

Alliance executive vp George Burger has confirmed that he will not be part of the new company. Alliance cfo Roman Doroniuk is also expected to leave the new entity with Kerri Golden having been named cfo.

There is also much cross over in both companies’ business and legal affairs, accounting and communications/publicity departments.

Coinciding with the merger, Alexandra Brown was appointed vp communications of Atlantis Communications. It appears that Brown, who was previously senior vp of Atlantis Broadcasting will have a lead role in worldwide communications with the new company.

The fate of Jean Michel Ciszewski, senior vp international sales Alliance Television is also in question with Atlantis’ Ted Riley heading up the new company’s television distribution operations.

Riley says that the new company’s distribution corporate structure hasn’t been decided yet. ‘We’re going to use this period of time to assess where we’re going and how,’ he says. ‘In Europe alone we have at least 25 employees. I don’t know Alliance’s infrastructure or how many they have.’

Alliance recently moved its European operations from Paris to London.

While Atlantis’ Peter Sussman has been chosen to head the Alliance Atlantis’ l.a. operations, David Ginsburg Alliance’s l.a.-based president of filmed entertainment will continue in the same capacity according to a company statement.

Fewer in-house

producers likely

What role Alliance senior production execs such as Christine Shipton senior vp creative affairs and Ian McDougall senior vp production will have with Alliance Atlantis has not been determined, according to the new company’s head of production, Atlantis co-founder Seaton McLean.

‘I have no idea right now,’ says McLean. ‘We haven’t got to that level yet.’ He adds that the companies will continue to operate separately until September.

But McLean is confident that he, McDougall and Shipton will work together in some capacity. ‘I’ve known Ian and Christine for years,’ McLean says. ‘[Ian] reminded me the other day that he gave us our first check from Telefilm when he was working there.

‘I have every expectation that I’ll be working with Ian and Christine for many years to come.’

But employing a stable of in-house producers at the new entity appears unlikely according to McLean who says that Atlantis history points to a trend of using freelance independents in the future.

‘Five years ago, we had seven executive producers on staff with Atlantis making TV shows. This year we have one,’ McLean comments. He predicts that ‘it’s just the evolution of the world.’

With a long history of working with Alliance, independent producer and co-principal of Fogbound Films, Barbara Samuels says that while things may look bad for those on the Alliance side of the fence, it really comes down to the talents of individuals.

‘Some are thinking that if you’re Alliance flock, you’ll be thrown to the wolves, and if you’re Atlantis flock, you’ll be eating lamb,’ Samuels says. ‘Well, I think that’s a rather simplistic way to look at it.’

‘If we all take a cold step back we’re basically commodities. Personal relationships make the job more pleasant but ultimately it will be about who does the work, and one would hope that the new executive at the mega-corporation will look at the slate and say proven performers will work and those who haven’t proven themselves will have a slap at the trough.’

Both MacMillan and Lantos said that while the merger would result in layoffs within the corporate structure, the new company’s increased production would increase jobs for actors and crew.

‘The result is going to be a net gain, certainly from a Canadian point of view,’ says Lantos. ‘We do have redundancies when you put the two companies together, but with a stronger merged entity, we’re going to have a continued growth in production. Any potential reductions at head office will be more than outweighed in terms of the people who are engaged directly in the business of independent production, actors or writers or directors.’

But while expressing optimism about the merger, actra president Ferne Downey also expressed concern about the potential problem of placing fair market value on the company’s productions.

While the increased vertical integration of the new entity increases economies of scale making the company more efficient, Downey says that it makes it difficult to place a fair market value on productions that are made by one division of an entertainment conglomerate and sold to another division of the same entity.

‘Market value of productions is essential in calculating how much performers are paid for the use and distribution of their images and performances,’ says Downey.

While those in television and administration at both companies face uncertainty, Alliance’s motion picture operations will remain untouched with Alliance vice-chairman and president of distribution Victor Loewy heading up the motion picture operations for the new company. Loewy’s responsibilities will include domestic and international distribution as well as overseeing the company’s foray into exhibition in a co-venture with Famous Players. Loewy will also be a company director.

Victor Loewy told the Montreal press no changes were anticipated at the Montreal office. Loewy says the Montreal operation, Alliance Vivafilm, is experiencing new growth under a highly motivated new president Guy Gagnon, and staff has recently been expanded from 22 to 35.